Judge Sullivan on Friday dismissed a shareholder class action against RIM, maker of the Blackberry smartphone, because the allegations amounted to mere “mismanagement”:
It is plain from the CAC as well as RIM’s financial trajectory over the past two years that Defendants have failed to keep pace with their rivals in the highly competitive market for smartphones and information technology. As a consequence, Defendants have paid a price for their mistakes by way of demotions, terminations, and sizable financial setbacks. Nevertheless, corporate failings alone do not give rise to a securities fraud claim. Here, the facts alleged by Plaintiff support a finding of corporate mismanagement, not misfeasance.